Horngren's Accounting (12th Edition)
12th Edition
ISBN: 9780134486444
Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura
Publisher: PEARSON
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Textbook Question
Chapter 19, Problem 3QC
When a manufacturing company uses indirect materials, it accumulates the cost by debiting
Learning Objective 2
- Work-in-Process Inventory.
- Indirect Materials.
- Raw Materials Inventory.
- Manufacturing
Overhead .
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Check out a sample textbook solutionStudents have asked these similar questions
S18-1 Comparing job order costing versus process costing
Learning Objective 1
Identify each costing system characteristic as job order costing or process
costing.
a. One Work-in-Process Inventory account
b. Production cost reports
c. Cost accumulated by process
d. Job cost sheets
e. Manufactures homogenous products through a series of uniform steps
f. Multiple Work-in-Process Inventory accounts
g. Costs transferred at end of period
h. Manufactures batches of unique products or provides specialized
services
Learning Outcomes Addressed:
This assessment item addresses the following unit learning outcomes (ULOs) as described in the Unit Outline:
1. Clear understanding of various cost terms, cost behaviour and the role of overhead cost in pricing decisions
2. Ability to apply Activity Based Costing (ABC) techniques to an actual business in order to arrive at the most accurate costing for products.
requirement:
kindly adress these two question in detail. (please avoid any kind of plagorism and copy past and then paraphrasing )
E-LEARNING SERVICES
SQU LIBRARIES
-LEARNING SYSTEM (ACADEMIC)
Process costing:
Time left 1:55:02
O a. allocates applied manufacturing overhead cost to product cost.
O b. is normally used by companies which produce shoes.
O C. All the given answers are correct.
O d. uses the manufacturing accounts, including Manufacturing Overhead, Raw Materials, Work
in Process, and Finished Goods.
O e. assigns direct materials cost, direct labor cost, and manufacturing overhead costs to
products to compute product cost per unit.
Company XYZ made total sales revenue of $200,000. The variable manufacturing costs were
$75,000 while the fixed manufacturing costs were $20,000. The variable selling and administrative
expenses were $45,000 while the fixed selling and administrative expenses were $10,000. How
much was the total contribution margin ($)?
O a.
125,000
O b. 105,000
Fi
O C.
145,000
O d. None of the given answers
O e. 80,00O
Chapter 19 Solutions
Horngren's Accounting (12th Edition)
Ch. 19 - Prob. 1QCCh. 19 - When a manufacturing company uses direct...Ch. 19 - When a manufacturing company uses indirect...Ch. 19 - When a manufacturing company uses direct labor, it...Ch. 19 - What is Gell's predetermined overhead allocation...Ch. 19 - What is Gell's actual manufacturing overhead cost?...Ch. 19 - How much manufacturing overhead would Gell...Ch. 19 - What entry would Gell make to adjust the...Ch. 19 - A manufacturing company completed work on a job....Ch. 19 - Prob. 10QC
Ch. 19 - Why do managers need to know the cost of their...Ch. 19 - What types of companies use job order costing...Ch. 19 - What types of companies use process costing...Ch. 19 - What is the purpose of a job cost record?Ch. 19 - Explain the difference between cost of goods...Ch. 19 - A job was started on May 15, completed on June 27,...Ch. 19 - Give the journal entry for raw materials purchased...Ch. 19 - What is the purpose of the raw materials...Ch. 19 - How does the use of direct and indirect materials...Ch. 19 - Give the journal entry for direct and indirect...Ch. 19 - Give five examples of manufacturing overhead...Ch. 19 - What is the predetermined overhead allocation...Ch. 19 - What is an allocation base? Give some examples.Ch. 19 - How is manufacturing overhead allocated to jobs?Ch. 19 - A completed job cost record shows the unit cost of...Ch. 19 - Explain the journal entry for the allocation of...Ch. 19 - Give the journal entry for the completion of a...Ch. 19 - Why does the sale of a completed job require two...Ch. 19 - Prob. 19RQCh. 19 - If a company incurred $5,250 in actual overhead...Ch. 19 - Refer to the previous question. Give the journal...Ch. 19 - Explain the terms accumulate, assign, allocate,...Ch. 19 - Why would the manager of a service company need to...Ch. 19 - How is the predetermined overhead allocation rate...Ch. 19 - Distinguishing between job order costing and...Ch. 19 - Accounting for materials Back Country manufactures...Ch. 19 - Accounting for materials Learning Objective 2...Ch. 19 - Accounting for labor Learning Objective 2...Ch. 19 - Accounting for overhead Learning Objective 3 Oak...Ch. 19 - Allocating overhead Learning Objective 3 Job 303...Ch. 19 - Calculating predetermined overhead allocation...Ch. 19 - Completing and selling products Learning Objective...Ch. 19 - Comparing actual to allocated overhead Learning...Ch. 19 - Calculating under/overallocated overhead Learning...Ch. 19 - Prob. S19.11SECh. 19 - Prob. S19.12SECh. 19 - Prob. S19.13SECh. 19 - Prob. S19.14SECh. 19 - Distinguishing between job order costing and...Ch. 19 - Defining terminology Learning Objectives 1,2 Match...Ch. 19 - E19-17 Accounting for job costs
Learning Objective...Ch. 19 - E19-18 Recording materials and labor...Ch. 19 - Prob. E19.19ECh. 19 - Allocating and adjusting manufacturing overhead...Ch. 19 - Prob. E19.21ECh. 19 - Prob. E19.22ECh. 19 - Prob. E19.23ECh. 19 - Preparing job order costing journal entries...Ch. 19 - Prob. E19.25ECh. 19 - E19-26 Determining missing amounts
Learning...Ch. 19 - Prob. E19.27ECh. 19 - Prob. P19.28APGACh. 19 - Prob. P19.29APGACh. 19 - Prob. P19.30APGACh. 19 - Prob. P19.31APGACh. 19 - Prob. P19.32APGACh. 19 - Prob. P19.33APGACh. 19 - Prob. P19.34BPGBCh. 19 - Prob. P19.35BPGBCh. 19 - Prob. P19.36BPGBCh. 19 - Prob. P19.37BPGBCh. 19 - Prob. P19.38BPGBCh. 19 - Using job order costing in a service company...Ch. 19 - Using Excel to calculate a predetermined overhead...Ch. 19 - P19-41 Accounting for manufacturing overhead
This...Ch. 19 - Prob. 19.1TIATCCh. 19 - Prob. 19.1DCCh. 19 - Prob. 19.1FC
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Click to watch the Tell Me More Learning Objective 4 video and then answer the questions below. 1. Which of the following represents the computation of direct materials cost per equivalent unit? Total direct cost for the period divided by total equivalent units of direct materials. Total equivalent units of direct materials divided by total direct cost for the period. Total direct cost for the period divided by total units of direct materials. Total units of direct materials divided by total direct cost for the period. 2. What is the conversion cost per equivalent unit, when the total conversion cost for the period is $1,225 and the total units of packaged drinking water produced during the same period is 5,000 gallons (70 percent complete). $0.17 per gallon $0.35 per gallon $2.86 per gallon None of these choices are correct.arrow_forwardClick to watch the Tell Me More Learning Objective 1 video and then answer the questions below. 1. Which of the following manufacturers is most likely to use a process cost system? Purse manufacturer Sports drink manufacturer Automobile manufacturer Guitar manufacturer 2. Process and job order cost systems are similar in that both systems _______. record and summarize product costs classify product costs as direct materials, direct labor, and factory overhead allocate factory overhead costs to products All of these choices are correct.arrow_forwardClick to watch the Tell Me More Learning Objective 2 video and then answer the questions below. 1. The first step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed units 2. The last step in preparing a cost of production report is to _____. compute equivalent units of production determine the units to be assigned costs determine the cost per equivalent unit allocate costs to units transferred out and partially completed unitsarrow_forward
- Compute the ending inventory of work in process ANSWER IN EXCEL FORMarrow_forward3. compute the cost of the ending inventory of work in process ANSWER IN EXCEL FORMarrow_forwardIdentify the journal entry for normal wastage. a. Dr.Material inventory, Cr.Production overheads b. Dr.Costing profit and loss account, Cr.Work in process inventory c. Dr.Production overheads, Cr.Work in process inventory d. Dr.Material inventory, Cr.Work in process inventoryarrow_forward
- Identify the journal entry for indirect material return to supplier. a. Dr.Material inventory, Cr.Work in process inventory b. Dr.Accounts payable, Cr.Material inventory c. Dr.Production overheads, Cr.Work in process inventory d. Dr.Material inventory, Cr.Accounts payablearrow_forwardE18-17 Comparing job order costing versus process costing Learning Objective 1 For each of the following products or services, indicate if the cost would most likely be determined using a job order costing system or a process costing system. a. Soft drinks b. Automobile repairs c. Customized furniture d. Aluminum foil e. Lawn chairs f. Chocolate candy bars g. Hospital surgery h. Pencilsarrow_forwardThe purchase of manufacturing supplies is normally recorded as a debit to Group of answer choices raw materials inventory administrative expenses work in process manufacturing overheadarrow_forward
- Choose the journal entry. 1. Direct Materials used in the production Dr Work In process Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Materials Inventory 2.Indirect Materials used in the production Dr Factory overhead Inventory; Cr Materials Inventory Dr Materials Inventory; Cr Work In process Inventory Dr Factory overhead Inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Materials Inventory 3. Record the accrued Direct Labor Dr Factory overhead; Cr Finished goods inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Work In process Inventory; Cr Salary Payable Dr Materials Inventory; Cr Work In process Inventoryarrow_forwardChoose the journal entry 4. Record the cost of goods manufactured Dr Factory overhead; Cr Finished goods inventory Dr Work In process Inventory; Cr Finished goods Inventory Dr Finished goods inventory; Cr Work In process Inventory Dr Materials Inventory; Cr Work In process Inventory\ 5. Record the purchased Indirect Materials on account Dr Factory overhead inventory; Cr Accounts payable Dr Materials inventory; Cr Accounts payable Dr Factory overhead inventory; Cr Cash Dr Materials inventory; Cr Casharrow_forward(ACADEMIC) E-LEARNING SERVICES SQU LIBRARIES SQU PORTALATTENDANCE urses / ACCT2121_yasserg_Spring21 / Midterm Exam One / Midterm Exam One Time left 1:49:27 Which of the following is correct with respect to closing out overapplied manufacturing overhead to Cost of Goods Sold versus closing it out to Work-in-Process Inventory, Finished Goods Inventory, and Cost of Goods Sold? None of given answer is correct. O a. O b. The balance in the Work-in-Process account after allocation will be the same under either method. O C. Cost of Goods Sold will be lower if the overapplied overhead is closed out by allocating it to the inventory accounts as well as to Cost of Goods Sold. O d. The balance in the Work-in-Process account after allocation will be higher if the overapplied overhead is closed out by allocating it to all appropriate accounts. e. Operating income will be higher if all the overapplied overhead is closed out to Cost of Goods Sold. The total conversion cost for company XYZ was five…arrow_forward
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